REG - Wilmington PLC - Interim Results <Origin Href="QuoteRef">WIL.L</Origin> - Part 3
23/02/2017 07:07
- Part 3: For the preceding part double click ID:nRSW6095Xb
46,584 shares (2015: 46,584) were held in Treasury, which
represents 0.1% (2015: 0.1%) of the called up share capital of the Company.
18. Cash generated from operations
Six months ended 31 December 2016 Six months ended 31 December 2015 Year ended 30 June
2016
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Profit/(loss) from continuing operations before income tax 5,031 4,547 (3,434)
Other adjusting items (included in operating expenses) 947 873 2,352
Depreciation of property, plant and equipment 493 447 911
Amortisation of intangible assets 3,275 3,523 6,595
Impairment of goodwill - - 15,659
Profit/(loss) on disposal of property, plant and equipment 8 (4) (4)
Share based payments (including social security costs) 310 278 563
Net finance costs 915 1,024 1,920
Operating cash flows before movements in working capital 10,979 10,688 24,562
Increase in trade and other receivables (3,614) (1,583) (2,434)
Increase/(decrease) in trade and other payables 597 (856) 1,744
Cash generated from operations before adjusting items 7,962 8,249 23,872
Cash conversion is calculated as a percentage of cash generated by operations
to Adjusted EBITA as follows:
Six months ended 31 December 2016(unaudited)£'000 Six months ended 31 December 2015(unaudited)£'000 Year ended 30 June 2016(audited)£'000
Funds from operations before adjusting items:
Adjusted EBITA 10,023 9,733 22,605
Amortisation of intangible assets - computer software 455 512 1,050
Depreciation of property, plant and equipment 493 447 911
Profit/(loss) on disposal of property, plant and equipment 8 (4) (4)
Operating cash flows before movements in working capital 10,979 10,688 24,562
Net working capital movement (3,017) (2,439) (690)
Funds from operations before adjusting items 7,962 8,249 23,872
Cash conversion 79% 85% 106%
Free cash flows:
Operating cash flows before movement in working capital 10,979 10,688 24,562
Profit/(loss) on disposal of property, plant and equipment 21 (4) (4)
Net working capital movement (3,017) (2,439) (690)
Interest paid (880) (658) (1,502)
Tax paid (1,996) (1,431) (3,197)
Purchase of property, plant and equipment (579) (290) (641)
Purchase of intangible assets (888) (472) (870)
Free cash flows 3,640 5,394 17,658
19. Related party transactions
The Company and its wholly owned subsidiary undertakings offer certain
Group-wide purchasing facilities to the Company's other subsidiary
undertakings whereby the actual costs are recharged.
The Chief Executive Officer, Pedro Ros, owns a minority shareholding in SMARP
OY (a company incorporated in Finland), which provides social media services
to the Group, the subsidiary paid £nil (2015: £11,160) during the year to
SMARP UK Limited, a subsidiary of SMARP OY.
Close family members of key management personnel provided photography services
for the group during the period. The total invoiced for these services was
£120 (2015: nil).
20. Seasonality
The Group has traditionally generated the majority of its revenues and profits
during the second half of the financial year. This has historically resulted
from two factors. Firstly, most of the Group's businesses (the notable
exception being AMT) produce seasonally low sales in July, August and December
which include holiday periods for many of the Group's clients. Secondly,
Inese, Compliance Week and FRA, have major annual events in the second half of
the year. The acquisition of HSJ on 31 January 2017 should also benefit
reported revenue and earnings in the second half of the year.
21. Events after the reporting period
a) Acquisition - Health Service Journal
On 31 January 2017 the Group acquired the trading assets and the assumption of
certain liabilities of Health Service Journal ('HSJ') the UK's leading health
information, insight and networking business, from Ascential plc for £19m less
an adjustment for working capital. The consideration will be financed out of
the Group's £85m revolving multi-currency credit facility following the
activation of the accordion. The process of fair valuing HSJ has not been
completed at the date of these financial statements. Subject to this process
to fair value, the group acquired intangible assets comprising the HSJ brand
and customer relationships together with certain net liabilities (including
deferred revenue). The excess consideration above the fair value of these
acquired net liabilities and deferred revenue will be recognised as goodwill
and intangible asset following completion of the exercise to fair value. All
amounts are disclosed as provisional.
b) Asset held for sale - Ark Group Limited
In line with the Group's strategy to focus the business around three new
knowledge areas going forward, the decision was made to exit the legal
practice support services market that Ark Group Limited ('Ark'), which is
currently presented in the 'Legal' segment, operates in. Since the balance
sheet date the business has been actively marketed at a reasonable sale price
and on 16 February 2017 the Board approved the disposal of Ark. The completion
date of the transaction is expected to be within twelve months.
As a result after the balance sheet date the assets and liabilities related to
Ark Group Limited meet the criteria of an asset held for sale under IFRS 5.
Statement of Directors' Responsibilities
The Directors confirm that, to the best of their knowledge, the Interim
Information has been prepared in accordance with International Accounting
Standard 34 Interim financial reporting as adopted by the European Union. The
Interim Management Report includes a fair review of the Interim Information
and, as required by DTR 4.2.7R and DTR 4.2.8R, the following information:
* an indication of important events that have occurred during the first six
months of the financial year, and their impact on the condensed set of
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and
* disclosure of material related party transactions that have taken place in
the first six months of the current financial year and of any material changes
in the related party transactions described in the last Annual Report and
Financial Statements.
A list of current Directors is maintained on the Wilmington plc website:
wilmingtonplc.com.
By order of the Board
Anthony Foye
Chief Financial Officer
22 February 2017
Appendix 1 - New operating segments (unaudited)
Wilmington currently manages and reports its business by reference to four
knowledge based divisions; Risk & Compliance, Finance, Legal and Insight. The
results from the recent SWAT acquisition are included within the Finance
division.
From and including 30 June 2017 we will be presenting information on the
current structure and representing the same information on our new three
divisional structure of Risk & Compliance, Professional and Healthcare.
Wilmington restates below its historical performance to reflect the new
structure.
Revenue Adjusted EBITA
Six months ended 31 December 2016 Six months ended 31 December 2015 Year ended 30 June 2016 Six months ended 31 December 2016 Six months ended 31 December 2015 Year ended 30 June 2016
£'000 £'000 £'000 £'000 £'000 £'000
Risk & Compliance 19,535 17,593 38,802 5,630 5,595 12,678
Professional 19,506 19,233 36,743 2,726 3,078 6,159
Healthcare 15,772 12,537 30,179 3,413 2,790 7,316
Unallocated central overheads (1,746) (1,730) (3,548)
54,813 49,363 105,724 11,769 11,463 26,153
Reconciliation December 2016
Revenue Risk & Compliance Professional Healthcare
£'000 £'000 £'000 £'000
Risk & Compliance 19,535 19,535
Finance 12,388 12,388
Legal 7,118 7,118
Insight 15,772 15,772
Revenue 54,813 19,535 19,506 15,772
As % of revenue 36% 36% 29%
Adjusted EBITA Risk & Compliance Professional Healthcare
£'000 £'000 £'000 £'000
Risk & Compliance 5,630 5,630
Finance 1,929 1,929
Legal 797 797
Insight 3,413 3,413
Contribution 11,769 5,630 2,726 3,413
As % of contribution 48% 23% 29%
Unallocated central overheads (1,746)
Adjusted EBITA 10,023
Reconciliation December 2015
Revenue Risk & Compliance Professional Healthcare
£'000 £'000 £'000 £'000
Risk & Compliance 17,593 17,593
Finance 11,595 11,595
Legal 7,638 7,638
Insight 12,537 12,537
Revenue 49,363 17,593 19,233 12,537
As % of revenue 36% 39% 25%
Adjusted EBITA Risk & Compliance Professional Healthcare
£'000 £'000 £'000 £'000
Risk & Compliance 5,595 5,595
Finance 2,435 2,435
Legal 643 643
Insight 2,790 2,790
Contribution 11,463 5,595 3,078 2,790
As % of contribution 49% 27% 24%
Unallocated central overheads (1,730)
Adjusted EBITA 9,733
Reconciliation June 2016
Revenue Risk & Compliance Professional Healthcare
£'000 £'000 £'000 £'000
Risk & Compliance 38,802 38,802
Finance 21,219 21,219
Legal 15,524 15,524
Insight 30,179 30,179
Revenue 105,724 38,802 36,743 30,179
As % of revenue 37% 35% 29%
Adjusted EBITA Risk & Compliance Professional Healthcare
£'000 £'000 £'000 £'000
Risk & Compliance 12,678 12,678
Finance 4,473 4,473
Legal 1,686 1,686
Insight 7,316 7,316
Contribution 26,153 12,678 6,159 7,316
As % of contribution 48% 24% 28%
Unallocated central overheads (3,548)
Adjusted EBITA 22,605
This information is provided by RNS
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